Nvidia stock is under close watch due to its recent price changes and future possibilities. It’s currently trading around $175, stuck between $164 and $185 since its latest earnings report. The stock had been on an upward trend due to high demand for AI, growth in data centers, and strong earnings.

Swing Trading Strategies

Swing traders are paying attention to the $164 to $185 range. They see $184–$185 as a good spot to sell, anticipating selling pressure there. On the other hand, $164–$165 looks attractive for long positions, hoping for a rebound. This strategy is likely to continue until a clear breakout happens. For long-term investors, the critical level to watch is $147, where Nvidia broke out of a long downward trend. If it retests this level, major institutional buying might occur. While swing traders look for quick profits, long-term investors hope for a pullback to $147 to make their move. Nvidia is a strong player in the AI and semiconductor markets. However, strategies vary: swing traders aim for short-term gains, while long-term investors seek better entry points. Timing is essential. Nvidia is currently consolidating, creating a solid opportunity for option traders. The stock has been trading closely between $164 and $185 since its last earnings report, following a 10-for-1 stock split in June 2025. This narrow range makes selling premium a smart strategy in the coming weeks.

Option Trading Opportunities

For those who think the stock will stay within this range, an iron condor strategy could work well. By selling a call spread above $185 and a put spread below $164, traders can profit from the passage of time. This strategy is backed by low market volatility, with the VIX around a 52-week low of 12.8 recently. The fundamentals support this consolidation, as Q2 2025 earnings showed a 125% year-over-year revenue growth in the data center sector, even as new competition arises. Companies like AMD and Intel have released updated AI chips, creating some uncertainty that prevents the stock from breaking out. This mix of strong results and increased competition keeps the stock in its current trading range. Traders looking for a potential breakdown should keep an eye on the $164 support level. A significant drop below this could occur due to broader market concerns, especially after the recent CPI report for August 2025 showed inflation rising slightly to 3.4%. If support breaks, buying put options or creating put debit spreads could be a timely move to target the next major support level. On the flip side, breaking above the $185 resistance would indicate a continuation of the bullish trend. This could happen with a new product launch or an upgrade from a well-known analyst. In that case, buying call options or call debit spreads would let traders benefit from the upward momentum while managing risk. For those with a longer-term outlook who share institutional sentiments, selling cash-secured puts around the $147 level is a solid strategy. This level is crucial as it marks a significant breakout point from earlier in 2025 and is likely where we will see strong buying interest. Selling puts with a few months until expiration allows one to gather substantial premium while waiting for a possible deep pullback to a more appealing price. Create your live VT Markets account and start trading now.

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